Question 5: Evaluate the Put-Warrant/Convertible Bond proposal. Does it solve Intel’s capital structure dilemma? What arguments might be made in favor of it? Intel’s capital structure dilemma was that it was holding too much cash on hand. Eventually‚ there were three available strategies or alternatives that Intel could undertake in terms of cash disbursement policies. First‚ it could continue or expand its market-repurchase program. Secondly‚ Intel could declare dividends to its shareholders
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I s there a way of dividing a company’s capital base between debt and equity that can be expected to maximize fi rm value? And‚ if so‚ what are the critical factors in determining the target leverage ratio for a given company? Although corporate fi nance has been taught in business schools for more than a century‚ the academic fi nance profession has found it diffi cult to come up with defi nitive answers to these questions. Part of the diffi culty stems from how the discipline has evolved
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Essay Title: “The Importance and Elements of Organisational Structure” By Peter Kambona: pkambona@gmail.com Date: 18 February 2013 Table of Contents 1.0 Introduction 3 2.0 Importance of good organisation structure 3 2.1 Accountability 3 2.2 Revenue Growth 4 2.3 Product Development 4 3.0 Main Elements of Organisation Structure 4 3.1 Designing jobs 4 3.2 Creating a Hierarchy 5 3.3 Span of Control 5 3.4 Forming departments and work units 6 3.5 Coordinating
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Mintzbergs Model on Organisational Structures The Five Parts This note summarises the key features of Henri Mintzbergs theory on the structuring of organisations‚ which he presented in his book The Structuring of Organisations and Structure in 5 ’s: Designing Effective Organizations in the early 1980s. According to Mintzberg organisations are formed of five main parts: Operating core Those who perform the basic work related directly to the production of products and services Strategic apex
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Capital One Financial Corporation 1. How is Capital One’s use of IT different from other mass customization strategies? Capital One uses IT through its information-based strategy (IBS) to “record‚ organize‚ and analyze data on the characteristics and behaviors of their customers‚” as stated by CEO Richard Fairbank. Their philosophy was to exploit information by constructing scientific models that could be used to both assess the creditworthiness of potential cardholders through
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SOUTHEASTERN HOMECARE Cost of Capital Background Southeastern Homecare was initially a taxable partnership owned organization run by three partners‚ but later due to lack of capital and the rapid growth of the organization‚ the company was incorporated and the stocks were sold to the public. The company has two operating divisions: the Healthcare Services Division and the Information Systems Division. Both these divisions provide different services and operate individually. The Information Systems
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Capital budgeting Making decisions having significant future benefits or costs for various entities and their stakeholders. Capital budgeting is the backbone of financial economics. Related topics in financial economics include: the time value of money‚ the meaning of net-present value‚ accounting concepts consistent with present-value calculations‚ discount rates‚ and option valuation techniques. In the public sector‚ the term is often exclusively associated with infrastructure investments
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& Linda‚ 2009). The chapter discusses about organization structure‚ teamwork‚ and communication. Organization structure is the form of an organization that is evident in the way divisions‚ departments‚ functions‚ and people link together and interact. Organization structure reveals vertical operational responsibilities‚ and horizontal linkages‚ and may be represented by an organization chart. The complexity of an organization’s structure is often proportional to its size and its geographic dispersal
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Organizational Structure-One Smooth Stone Do you think One Smooth Stone is organized by function‚ product‚ location‚ or customer? Why? I think that is organized by products and customers because they want their clients to be successfully from their product and they don’t want to their clients to waste their money on a product that didn’t sale. One Smooth Stone is an entrepreneurial start-up that hosts and manages customized meetings and events for its corporate clients. The video shows how the
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of Diageo‚ the treasury team was given the task of establishing the cost of capital for each of the different areas the company operated. The team had to create a simulation model which should consider new finance approaches‚ treasury functions to focus on‚ what the firm’s risk footprints will be‚ how to calculate cost of capital and finally how to optimally structure capital. How has Diageo managed its capital structure? Both Grand Metropolitan and Guinness had little debt prior to the merger‚
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